ITC Credit FY 2018-19 available on invoices

[Anurag Dhawan]

This is for FY 18-19. The supplier has filed GSTR-1 on 30/01/2020, sept 18, therefore these invoices are not included in our Table 8a of GSTR-9 filed for that year, now when we see GSTR-2A for sept these invoices are visible with date of filing the GSTR-1, we had taken credit in sept 18 itself.

I want to know whether the credit taken by us in sept 18 itself is valid and will be allowed

[KASTURI SETHI]

You have taken credit in letter and spirit of Section 16 of CGST Act. You have taken credit in time. Credit cannot be denied. It is not time barred. First compliance is of the Act. In case the supplier has not uploaded the invoices via GSTR-1 in time, you are not at fault. Also check the date of commencement of GSTR 2A in Common Portal System.

I am of the view that your credit stands validated. As per the Act, no fear of SCN exists.

[Shilpi Jain]

Agree with Kasturi sir. Also, the provision for considering GSTR-2B/2A as the basis for availing credit is only from 01.01.2022. Until then the provisions were contained only in the Rules.

[SHARAD ANADA]

j. The Government has issued a press release on 3rd July 2019 and clarified about the Premise of Table 8D of Annual Return: The same is reproduced hereunder for your kind perusal.

There appears to be some confusion regarding declaration of input tax credit in Table 8 of the annual return. The input tax credit which is declared / computed in Table 8D is basically credit that was available to a taxpayer in his FORM GSTR-2A but was not availed by him between July 2017 to March 2019. The deadline has already passed and the taxpayer cannot avail such credit now. There is no question of lapsing of any such credit, since this credit never entered the electronic credit ledger of any taxpayer. Therefore, taxpayers need not be concerned about the values reflected in this table. This is merely information that the Government needs for settlement purposes

[KASTURI SETHI]

Although a press release has no statutory force, ye it is very very useful information. Thanks a lot Sir.

[Anurag Dhawan]

Thanks everyone for reply, was really helpful

[Ganeshan Kalyani]

Sir, the input tax credit taken by you was valid and allowed as stated by experts.

AI Summary

Input tax credit validity: late supplier GSTR 1 filing does not nullify credit if entitlement conditions were met.
Input tax credit claimed in September 2018 is valid where the taxpayer met entitlement conditions; a supplier's delayed GSTR 1 filing does not invalidate such credit. Reliance on GSTR 2A/2B as a formal basis for credit arose later and earlier periods were governed by rules and administrative guidance. Table 8D entries in the annual return were informational, reflecting credits visible in GSTR 2A but not availed within the prior window, and could not be retroactively claimed after the administrative deadline.